US billionaire Todd Boehly leads plan to buy Lukoil's overseas assets via swap of frozen shares

In brief

• A consortium led by Todd Boehly is preparing to buy Lukoil's overseas assets through a share swap instead of cash.
• The buyers acquired frozen Lukoil shares at 30 cents on the dollar, with a bank acting for the group.
• The overseas portfolio was initially valued at $22 billion but has since lost value as some businesses stopped operating.

A cashless deal built on frozen shares

The transaction would be settled by swapping securities rather than paying money. According to four people close to the sale, cited by Reuters, Lukoil would receive back its own shares, which are held by Western investors including Capital Group, and the deal is expected to close within several weeks. Reports from Ukrainian and Russian outlets describe the same structure (Продаж активів "Лукойлу" наближається до завершення: хто очолив боротьбу за бізнес РФ – TSN) (Американський мільярдер "накинув оком" на закордонні активи "Лукойлу", - Reuters – UNIAN).

Discounted stakes bought from funds and banks

A bank acting for the Boehly group has already bought frozen Lukoil shares worth billions of dollars. The shares were acquired from roughly ten American and British funds and from US banks that held them for retail investors. Two sources said the buyers paid 30 cents on the dollar, a discount reflecting the sanctions that cover the stock.

What is being sold

Lukoil's overseas holdings include oil fields, refineries and filling stations in Europe, the Middle East and Africa. When the sale began, these assets were valued at $22 billion (Оценивались в $22 млрд. Американский миллиардер готовится купить международные активы российского нефтяного гиганта – NV). The value has since fallen, because some of the businesses have stopped working.

Who is behind the group

Todd Boehly lives in Miami and holds stakes in the Los Angeles Dodgers and the Los Angeles Lakers. Two Emirati investors, International Holding Company and Al Hail Holding, are part of the group, and Syrian-Qatari brothers Al-Hayat and the US International Development Finance Corporation are also reported to back the deal. Boehly's representatives did not respond to Reuters' requests for comment, and International Holding Company declined to comment on possible investments. Al Hail, the Al-Hayat brothers and the US corporation did not respond either.